While revenue growth has reached 10.4% year-over-year, the company struggles to achieve operating leverage, with operating margins currently constrained at 4.2% despite a robust 72.2% gross margin.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Dec'17 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 | Mar'96 | Mar'95 |
|---|
| Sales/Revenue | 409.99M | 400.04M | 350.63M | 313.4M | 312.06M | 474.04M | 443.46M | 457.11M | 433.46M | 56.32M | 26.53M | 17.11M | 15.29M | 16.69M | 10.9M | 10.81M | 12.83M | 9.95M | 9.49M | 11.15M | 10.33M | 9.93M | 6.43M | 6.71M | 7.21M | 7.05M | 7.5M | 8M | 8.3M | 6.2M | 7.7M |
| Revenue Growth % | 12.8% | 14.09% | 11.88% | 0.43% | -34.17% | 6.9% | -2.99% | 5.46% | 669.69% | 112.3% | 55.05% | 11.91% | -8.38% | 53.1% | 0.82% | -15.76% | 28.98% | 4.87% | -14.92% | 7.98% | 4.02% | 54.4% | -4.22% | -6.88% | 2.18% | -5.93% | -6.25% | -3.61% | 33.87% | -19.48% | 13.24% |
| Cost of Goods Sold | 112.36M | 110.75M | 103.71M | 98M | 119.94M | 132.4M | 132.67M | 164M | 176.77M | 18.87M | 3.13M | 12.61M | 10.95M | 11.6M | 7.98M | 9.8M | 10.46M | 8.56M | 7.53M | 8.51M | 7.38M | 6.16M | 4.76M | 4.49M | 4.4M | 4.5M | 5.8M | 6.1M | 7.1M | 6.6M | 7.2M |
| COGS % of Revenue | - | 27.68% | 29.58% | 31.27% | 38.43% | 27.93% | 29.92% | 35.88% | 40.78% | 33.51% | 11.78% | 73.71% | 71.6% | 69.53% | 73.21% | 90.64% | 81.48% | 85.99% | 79.42% | 76.36% | 71.49% | 62.01% | 74.07% | 66.89% | 61.06% | 63.81% | 77.33% | 76.25% | 85.54% | 106.45% | 93.51% |
| Gross Profit | 297.63M | 289.3M | 246.92M | 215.4M | 192.13M | 341.64M | 310.79M | 293.1M | 256.69M | 37.44M | 23.4M | 4.5M | 4.34M | 5.08M | 2.92M | 1.01M | 2.38M | 1.39M | 1.95M | 2.64M | 2.94M | 3.77M | 1.67M | 2.22M | 2.81M | 2.55M | 1.7M | 1.9M | 1.2M | -400K | 500K |
| Gross Margin % | 72.59% | 72.32% | 70.42% | 68.73% | 61.57% | 72.07% | 70.08% | 64.12% | 59.22% | 66.49% | 88.22% | 26.29% | 28.4% | 30.47% | 26.79% | 9.36% | 18.52% | 14.01% | 20.57% | 23.64% | 28.51% | 37.99% | 25.93% | 33.11% | 38.95% | 36.19% | 22.67% | 23.75% | 14.46% | -6.45% | 6.49% |
| Gross Profit Growth % | - | 17.16% | 14.63% | 12.12% | -43.76% | 9.93% | 6.03% | 14.19% | 585.53% | 60.01% | 420.25% | 3.59% | -14.61% | 74.14% | 188.54% | -57.43% | 70.55% | -28.56% | -25.99% | -10.44% | -21.95% | 126.21% | -24.98% | -20.86% | 9.99% | 50.18% | -10.53% | 58.33% | 400% | -180% | 400% |
| Operating Expenses | 280.74M | 285.94M | 252.05M | 233.46M | 295.45M | 330.68M | 292.51M | 265.79M | 238M | 38.33M | 31.05M | 11.94M | 12.82M | 15.2M | 14.28M | 13.78M | 15.2M | 13.71M | 7.55M | 6.86M | 5.5M | 7.57M | 3.43M | 3.4M | 3.73M | 4.11M | 3.6M | 4.9M | 7.7M | 9.4M | 8.9M |
| OpEx % of Revenue | - | 71.48% | 71.88% | 74.49% | 94.68% | 69.76% | 65.96% | 58.15% | 54.91% | 68.07% | 117.05% | 69.8% | 83.86% | 91.09% | 131.04% | 127.45% | 118.42% | 137.84% | 79.62% | 61.55% | 53.28% | 76.21% | 53.28% | 50.69% | 51.78% | 58.31% | 48% | 61.25% | 92.77% | 151.61% | 115.58% |
| Selling, General & Admin | 156.89M | 158.43M | 143.52M | 125.78M | 154.35M | 185.87M | 162.59M | 153.9M | 137.34M | 8.29M | 7.96M | 9.84M | 11M | 12.04M | 10.77M | 10.49M | 10.23M | 8.18M | 5.18M | 4.14M | 3.9M | 3.48M | 3.12M | 3.09M | 2.99M | 3.14M | 3M | 3.6M | 4.9M | 6.4M | 6.4M |
| SG&A % of Revenue | - | 39.6% | 40.93% | 40.13% | 49.46% | 39.21% | 36.66% | 33.67% | 31.69% | 14.73% | 29.99% | 57.52% | 71.95% | 72.19% | 98.83% | 97.04% | 79.69% | 82.19% | 54.64% | 37.1% | 37.74% | 35.04% | 48.45% | 46.09% | 41.48% | 44.49% | 40% | 45% | 59.04% | 103.23% | 83.12% |
| Research & Development | 124.02M | 127.51M | 108.27M | 107.28M | 140.32M | 143.36M | 128.71M | 111.3M | 100.01M | 4.74M | 2.85M | 2.1M | 1.82M | 3.15M | 3.51M | 3.29M | 4.83M | 3.44M | 2.37M | 2.23M | 1.42M | 688.63K | 426.21K | 215.65K | 743.17K | 684.21K | 200K | 800K | 2.3M | 2.4M | 2.2M |
| R&D % of Revenue | - | 31.87% | 30.88% | 34.23% | 44.97% | 30.24% | 29.02% | 24.35% | 23.07% | 8.42% | 10.75% | 12.28% | 11.91% | 18.91% | 32.21% | 30.41% | 37.65% | 34.59% | 25% | 19.98% | 13.77% | 6.94% | 6.63% | 3.21% | 10.31% | 9.7% | 2.67% | 10% | 27.71% | 38.71% | 28.57% |
| Other Operating Expenses | 1.36M | 0 | 258K | 391K | 779K | 1.46M | 1.22M | 593K | 651K | 25.3M | 20.24M | 0 | 0 | 0 | 0 | 0 | 140K | -11.61M | -7.52M | -6.36M | -5.31B | -4.16M | -3.54M | -3.31M | 0 | 290.95K | 400K | 500K | 500K | 600K | 300K |
| Operating Income | 16.89M | 2.12M | -5.13M | -18.05M | -103.32M | 10.96M | 18.28M | 27.31M | 18.69M | 1.5B | -7.65M | -7.44M | -8.48M | -10.12M | -11.36M | -12.42M | -12.72M | -10.88M | -5.6M | -4.23M | -2.56M | -3.79M | -1.76M | -1.18M | -925K | -1.56M | -1.9M | -3M | -6.5M | -9.8M | -8.4M |
| Operating Margin % | 4.12% | 0.53% | -1.46% | -5.76% | -33.11% | 2.31% | 4.12% | 5.98% | 4.31% | 2664.02% | -28.83% | -43.51% | -55.45% | -60.62% | -104.25% | -114.93% | -99.13% | -109.4% | -59.06% | -37.91% | -24.77% | -38.21% | -27.36% | -17.59% | -12.83% | -22.13% | -25.33% | -37.5% | -78.31% | -158.06% | -109.09% |
| Operating Income Growth % | - | 141.3% | 71.61% | 82.53% | -1042.64% | -40.03% | -33.09% | 46.14% | -98.75% | 19719.05% | -2.73% | 12.19% | 16.19% | 10.98% | 8.55% | 2.34% | -16.88% | -94.27% | -32.56% | -65.24% | 32.57% | -115.67% | -48.93% | -27.68% | 40.74% | 17.84% | 36.67% | 53.85% | 33.67% | -16.67% | 3.45% |
| EBITDA | 26.2M | 14.09M | 8.53M | -4.24M | -85.27M | 32.24M | 40.8M | 44.64M | 39.71M | 1.5B | -7.37M | -6.75M | -7.68M | -9.28M | -10.62M | -11.77M | -12.25M | -10.63M | -5.11M | -3.77M | -2.24M | -3.59M | -1.52M | -960.98K | -677.34K | -1.27M | -1.5M | -2.5M | -6M | -9.2M | -8.1M |
| EBITDA Margin % | 6.39% | 3.52% | 2.43% | -1.35% | -27.33% | 6.8% | 9.2% | 9.77% | 9.16% | 2669.64% | -27.78% | -39.45% | -50.25% | -55.63% | -97.39% | -108.89% | -95.46% | -106.84% | -53.89% | -33.82% | -21.69% | -36.15% | -23.64% | -14.31% | -9.4% | -18% | -20% | -31.25% | -72.29% | -148.39% | -105.19% |
| EBITDA Growth % | 110.01% | 65.31% | 301.18% | 95.03% | -364.5% | -20.97% | -8.61% | 12.41% | -97.36% | 20504.8% | -9.17% | 12.15% | 17.25% | 12.55% | 9.82% | 3.92% | -15.25% | -107.92% | -35.58% | -68.36% | 37.59% | -136.08% | -58.2% | -41.88% | 46.67% | 15.33% | 40% | 58.33% | 34.78% | -13.58% | 4.71% |
| D&A (Non-Cash Add-back) | 9.31M | 11.98M | 13.65M | 13.82M | 18.05M | 21.28M | 22.52M | 17.32M | 21.02M | 3.17M | 278.95K | 695K | 795K | 832K | 747K | 653K | 471K | 254.79K | 490.26K | 455.78K | 318.2K | 204.61K | 238.74K | 220.06K | 247.66K | 290.95K | 400K | 500K | 500K | 600K | 300K |
| EBIT | 14.1M | 2.12M | -4.27M | -13.24M | -95.4M | 8.46M | 24.91M | 30.42M | 20.44M | 1.5B | -7.64M | -7.51M | -10.04M | -10.53M | -11.5M | -12.79M | -7.39M | -9.33M | 20.63M | -4.03M | -2.5M | -3.79M | -1.74M | -1.17M | 0 | 0 | 0 | 0 | 0 | 0 | -8.4M |
| Net Interest Income | 1.76M | 1.84M | 2.37M | 1.88M | -823K | -19K | 1.16M | 3.03M | 2.67M | 245.65M | 511 | -188K | -494K | -481K | -329K | -8K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.95M | 2.03M | 2.47M | 1.9M | 774K | 177K | 1.35M | 3.51M | 3.17M | 245.68M | 1K | 4K | 9K | 8K | 4K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 189K | 194K | 100K | 16K | 1.6M | 196K | 185K | 481K | 499K | 29.03K | 489 | 192K | 503K | 489K | 333K | 12K | 16K | 9.06M | 1.42M | 3.16M | 4.97M | 0 | 724K | 6.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -7.25M | 9.22M | 756K | 4.79M | 6.33M | -2.7M | 6.45M | 2.62M | 1.25M | -1.5B | 3.69K | -258K | -2.07M | -900K | -472K | -382K | 5.32M | 1.54M | 26.23M | 53K | 53K | 45.38K | 14.96K | 1.41M | -221K | -3.33M | -200K | 300K | 300K | 300K | 0 |
| Pretax Income | 9.64M | 11.34M | -4.37M | -13.26M | -97M | 8.26M | 24.72M | 29.94M | 19.94M | -617K | -7.64M | -7.7M | -10.54M | -11.02M | -11.83M | -12.81M | -7.4M | -9.34M | 20.63M | -4.04M | -2.51M | -3.75M | -1.74M | -1.18M | -1.15M | -4.89M | -2.1M | -2.7M | -6.2M | -9.5M | 0 |
| Pretax Margin % | 2.35% | 2.84% | -1.25% | -4.23% | -31.08% | 1.74% | 5.58% | 6.55% | 4.6% | -1.1% | -28.82% | -45.02% | -68.98% | -66.01% | -108.58% | -118.46% | -57.69% | -93.9% | 217.47% | -36.19% | -24.26% | -37.76% | -27.12% | -17.57% | -15.9% | -69.27% | -28% | -33.75% | -74.7% | -153.23% | - |
| Income Tax | 9.86M | 6.73M | 2.86M | -1.61M | 12.96M | 18.52M | 4.41M | 2.57M | 7.62M | 137.12K | 65.51K | 12K | 12K | 1K | 9K | -382K | 21K | 1.55M | 26.24M | 194.25K | 57.63K | 0 | -1.74M | -1.18M | -221K | -3.33M | 0 | 300K | 0 | 300K | 0 |
| Effective Tax Rate % | 102.3% | 59.33% | -65.54% | 12.17% | -13.36% | 224.15% | 17.85% | 8.57% | 38.21% | -22.22% | -0.86% | -0.16% | -0.11% | -0.01% | -0.08% | 2.98% | -0.28% | -16.61% | 127.17% | -4.81% | -2.3% | 0% | 100% | 100% | 19.28% | 68.06% | 0% | -11.11% | 0% | -3.16% | - |
| Net Income | -2.7M | -638K | -12.05M | -15.57M | -114.13M | -14.89M | 14.2M | 20.19M | 8.73M | -883K | -7.71M | -7.71M | -10.56M | -11.02M | -11.84M | -12.42M | -8.22M | -9.34M | 20.63M | -4.04M | -2.51M | -3.75M | 0 | 0 | -1.29M | -4.78M | -2.1M | -2.6M | -6.2M | -9.4M | -8.4M |
| Net Margin % | -0.66% | -0.16% | -3.44% | -4.97% | -36.57% | -3.14% | 3.2% | 4.42% | 2.01% | -1.57% | -29.06% | -45.09% | -69.06% | -66.02% | -108.66% | -114.93% | -64.09% | -93.9% | 217.47% | -36.19% | -24.26% | -37.76% | - | - | -17.91% | -67.73% | -28% | -32.5% | -74.7% | -151.61% | -109.09% |
| Net Income Growth % | 65.94% | 94.71% | 22.6% | 86.36% | -666.5% | -204.84% | -29.66% | 131.34% | 1088.45% | 88.55% | 0.06% | 26.93% | 4.17% | 6.98% | 4.68% | -51.05% | 11.96% | -145.28% | 611.24% | -61.08% | 33.16% | - | - | 100% | 72.98% | -127.52% | 19.23% | 58.06% | 34.04% | -11.9% | -6.33% |
| Net Income (Continuing) | 2.47M | 4.61M | -7.23M | -11.64M | -109.95M | -10.26M | 20.31M | 27.37M | 12.32M | -883K | -7.71M | -7.71M | -10.56M | -11.02M | -11.84M | -12.42M | -8.22M | -9.34M | 20.63M | -4.04M | -2.51M | -3.75M | 0 | 0 | -1.29M | -4.78M | -2.1M | -2.6M | -6.2M | -9.4M | -8.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 23.3M | 22.32M | 18.91M | 16.86M | 15.64M | 13.95M | 12.87M | 10.63M | 7.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.04 | -0.01 | -0.17 | -0.22 | -1.68 | -0.22 | 0.22 | 0.31 | 0.13 | -0.01 | -0.15 | -0.17 | -0.23 | -0.24 | -0.31 | -0.34 | -0.24 | -0.26 | 1.17 | -0.23 | -0.14 | -0.21 | 0.00 | 0.00 | -0.29 | -1.19 | -0.57 | -0.85 | -2.30 | -4.20 | -4.15 |
| EPS Growth % | 64.7% | 94.88% | 22.73% | 86.9% | -663.64% | -200% | -29.03% | 138.46% | 984.35% | 90.2% | 11.76% | 26.09% | 4.17% | 22.58% | 8.82% | -41.67% | 7.69% | -122.22% | 608.7% | -64.29% | 33.33% | - | - | 100% | 75.63% | -108.77% | 32.94% | 63.04% | 45.24% | -1.2% | -5.06% |
| EPS (Basic) | - | -0.01 | -0.17 | -0.22 | -1.68 | -0.22 | 0.22 | 0.31 | 0.13 | -0.01 | -0.30 | -0.30 | -0.41 | -0.43 | -0.31 | -0.34 | -0.24 | -0.26 | 0.59 | -0.12 | -0.08 | -0.12 | 0.00 | 0.00 | -0.29 | -1.20 | -0.58 | -0.85 | -2.30 | -4.20 | -4.15 |
| Diluted Shares Outstanding | 73.06M | 72.91M | 71.8M | 70.08M | 67.92M | 66.57M | 65.77M | 65.4M | 65.77M | 59.98M | 52.98M | 46.16M | 45.95M | 45.68M | 38.32M | 36.85M | 36.66M | 35.29M | 31.24M | 31.24M | 31.24M | 31.24M | 27.19M | 26.99M | 4.47M | 4M | 3.67M | 3.04M | 2.69M | 2.24M | 2.02M |
| Basic Shares Outstanding | 73.06M | 72.91M | 71.8M | 70.08M | 67.92M | 66.57M | 65.77M | 65.4M | 65.4M | 59.98M | 25.51M | 25.51M | 25.51M | 25.51M | 38.32M | 36.85M | 34.27M | 35.29M | 35.17M | 35.1M | 31.45M | 30.21M | 27.19M | 26.99M | 4.47M | 3.99M | 3.65M | 3.04M | 2.69M | 2.24M | 2.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | 29.4% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical R&D disruption
According to reported financial statements, Cognyte has achieved a consistent revenue expansion, with the most recent quarter reaching $105.5M, representing a 10.4% year-over-year increase that suggests the company's transition toward a recurring software-led model is successfully gaining traction across its core government and enterprise client base.
The steady climb in quarterly revenue from $82.7M in 2025Q1 to current levels indicates that the post-spin-off contraction phase has likely bottomed out. Investors should monitor whether this growth is driven by new customer acquisition or the successful upselling of investigative analytics modules to existing national security partners.
Based on the provided income statement data, Cognyte maintains a robust gross margin profile of 72.2%, which appears to reflect the high software-to-hardware mix inherent in its specialized signals intelligence offerings despite the inherent volatility of project-based government contract deployments observed over the last ten quarters.
The stability of these margins suggests that the company possesses significant pricing power within its niche, as it remains a foundational component of sovereign telecommunications infrastructure. However, the gap between these gross figures and operating profitability warrants further investigation into whether the company can effectively scale its delivery without proportional increases in service-related costs.
As indicated by the latest quarterly figures, Cognyte's operating margin of 4.2% highlights a persistent struggle to achieve meaningful operating leverage, as the company's heavy investment in R&D and SG&A continues to consume nearly the entirety of its gross profit generated from its $105.5M in quarterly revenue.
The data suggests that the company is currently in an intensive investment phase, prioritizing the modernization of its software stack over immediate bottom-line profitability. Unless management can decouple revenue growth from headcount expansion, the firm may remain vulnerable to even minor fluctuations in project-based revenue streams.
Analysis of the income statement reveals that Cognyte's net income remains inconsistent, with recent quarterly results fluctuating between losses and marginal gains, a trend further complicated by the periodic recognition of stock-based compensation expenses that reached as high as $5.5M in previous fiscal periods.
The reliance on non-cash compensation to retain specialized engineering talent in the Israeli market suggests that reported EPS may not fully capture the true economic cost of operations. Investors should be cautious of these accounting nuances, as they may obscure the underlying cash-generating capability of the core business.
While the company reports a 72.2% gross margin, a critical counter-analysis suggests that the reliance on high-cost R&D and the potential for geopolitical disruption in its primary Israeli hub could lead to unexpected margin compression if government procurement cycles face delays or export restrictions tighten.
Short-term observers might argue that the current operating margin is insufficient to support the company's long-term R&D requirements, especially if the transition to recurring revenue fails to materialize as expected. The market's skepticism regarding the company's ability to scale profitably appears rooted in these structural cost concerns.
Quick answers to the most common questions about buying CGNT stock.
For fiscal year 2026, Cognyte Software Ltd. (CGNT) reported total revenue of $400.0M. This represents a 5095.3% increase compared to $7.7M in 1995.
Cognyte Software Ltd. (CGNT) reported a net loss of $0.6M for the fiscal year ending 2026.
Cognyte Software Ltd. (CGNT) reported an operating income of $2.1M, resulting in an operating profit margin of 0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Cognyte Software Ltd. (CGNT) generated $289.3M in gross profit for the year, representing a gross profit margin of 72.3%. This demonstrates the company's core pricing power and production efficiency.